Better ROI Real Estate Or Adult Sites
 

REAL ESTATE
Im always told income producing properties is the way to go. Other people build up your net worth (tenants) and if your lucky you will have a "few" extra bucks left over each month from a property. I see people buying 20 properties over time and eventually after alot of work they might end up with a $10k a month cashflow.
The investment is substantial and the loss can be very eminant and frequently occur.

ADULT SITES
With free adult sites the investment can be a few hundred bucks on content (one time), server bill (pennies depending how much traffic it has), and domain registration. The site is now your real estate property on the internet. It has expenses and cashflow. You cant build up a net worth with adult websites but you can build up a MASSIVE cashflow far more than anyone could buying real estate properties with a ton more investment cost.

I take 10% of every piece of profit I make online and put it into small cap stocks and real estate. Mutual funds are more for people who are not financially liturate (even though i cant spell!)

real estate !

Erm, Real Estate by far.

Tax advantage is significant, and in most parts of the country, appreciation is dramatic.

I doubt a market dropout will happen in the next decade or 2 either. =)

Hell, that and the fact that even if you are just buying a house to live in, you can write off approx $5k-20k/yr off your taxes.

the right domain names are just as good as any manhattan property!

very true, but finding them for cheap and selling them for big $$ is the hard part. Something to try and do on the side though.

real estate is the shit...i'm saving up to invest soon...

RE is a slow plan. but one that works.

unless ur flipping for short term money, it might not pay as well as porn.

then again, the barrier of entry to porn is alot lower than buying RE

No better investment than real estate :thumbsup

Depends how good you are. You can make/lose a shit load doing either of them.

my x's father owned 52 multifamily houses. I am convinced that this is the most fool proof way to becomming rich. Once you get a few paid off, you just grow the business and skim what you need for living expenses. anyone can do it.

For long term passive income gimme real estate anyday... use porn to make lots of money in the short term quickly, and spend it on real estate and other investments, but there's no really long term stability for a porn site.

Same could be said of porn. I know a lot of people gone bust doing both. :)

To the contrary.
In the long run, stocks has and will outperform real estate.
Lots of offline businesses are better investments than real estate.

real estate = low risk factor

stocks = rolling the dice

stocks diversification just as real estate diversification will lower your risk...

Well to answer my own question, a small free adult site that took me a few hours to build and has a automated trade script cost me less than 100 bucks and the bandwidth monthly is probably a few dollars. I make $400-$600 from that site with 3k a day in traffic and that income will come in indefinately as long as the gov't doesnt regulate free porn. Thats over 1000X return on my investment. You dont see that in real estate.

One of the best investments anyone can make is already secretly hiding within their own businesses. That is Marketing. An ad in a publication or online that pulls in a 2% return can have its wording or phrases changed and that same ad could bring in a 500% return. I love creating ads that make people take action. I remember my first time running a mail order business and when my phone rang for an inquiry i was so fucking excited! what a high. "i made someone take action". Im getting off subject here but hey its still money talk.

Real estate. Here in Vegas the top has been blown off the real estate market! Two of our neighbors have sold their houses for $100,000 more than they paid only a year ago ($300,000 and paid $200,000). New houses are sold by lottery and existing houses are swiped up in days. Amazing stuff.

You need to take into account leverage. Real Estate outperforms stocks when you look at that aspect of it.

Time is the big difference. Residantial multi unit property eats the time and commercial has much higher risk.

What offline businesses are better?

...
 

:rasta <- is the way to go

Real estate is more stable . But it always depends how you do it. ROI in adult can be very profitable of you are a good marketer . Ex . if you spend 5k a month with tgp spots you can make 20-25k back if you are good at promoting.

real estate is the way to go for long term. if you get a good renter you can have them paying your mortgage/taxes/insurance on a property and still get a little bit of $ left over. then you get the appreciation of the house.

the long term outlook on the adult world isnt very stable. things change easily, and you could be left out in the cold making nothing.

Wow.

Somone on this board has a clue.

:thumbsup

<table bgcolor=ffffff><tr><td>http://instruct1.cit.cornell.edu/cou...00/cocaine.gif</td></tr></table>

You can do many things with Real Estate.

:1orglaugh :1orglaugh :1orglaugh

there's no comparison between real estate and online business.

There are millionaires that frequent this board and started with $5-$5k initial investment a couple of years ago. How far such investment can go with real estate? Yeah you can afford a couple of bricks.

Real estate is more stable, can have a decent ROI over time, but unless you already rank in millionaires there are much better, low to medium risk investments that can bring insane ROI.

apples and oranges.

well if your in california real estte is hard to beat lately..i made as much in real estate last year as i did doing this junk

I think location has alot to do with real estate. Boston or NY on the east coast has alot of potential.

Everyone is always yapping on about real estate yet the simple fact is that the returns are relatively low in comparison to the majority of other financial instruments.

How many billionaires do you see that have made their money purely from real estate? very few, compare that to how many have made money from stocks, technology, futures, oil, forex etc.

you could make a billion on real estate, but you won't be around long enough to see it.

that's why you don't see billionaires from real estate :) it would take 10,000 years

the main advantage to RE investment is the tax advantages, and the ability to shelter other income with those tax advantages.

if you make any serious money you must invest in some real estate, usually your first investment will be in buying the place you live, and depreciating that % of space you use for your online "business."

if that is the only thing you did you would see a dramatic tax benefit.

but investing in real estate is no picnic.

you can lose $. if you want to do it i suggest investing in small single family houses where the monthly rent will cover your expenses with 10% down.

this is mostly impossible in places like california, but in the midwest it can be done.

buy on contract, and sell on contract, using wraparounds.

carry paper, hypothecate the notes for cash when you need it, flip as many properties as fast as you can.

and in 10 years you can be rich.

but better know which end of the hammer drives the nail, and the difference between a straight and phillips head screwdriver.

I know nothing about real estate, but have bought a lump.

From what I've seen (and what we have in the pipeline), real estate "appears" to earn substantially more than net stuff - I'm talking many millions. Tho there is work in developing it.

"Conventional" real estate .. like buying some rental property, does not appear to be in the same league.

whens the last time you were in manhatten, there are literally THOUSANDS if not tens of thousands of apartments / coops that sell for ten times the prices of the highest selling domain names

Very well said.

No it doesn't.

For example, just because you put $40,000 down on a $200,000 house and then resell it a few years later at $280,000, doesn't mean you made a net profit of $80,000 due to leverage.

There's all these "hidden costs" that people never seems to take into consideration comparing real estate with stocks...

I don't know about long term value, but around here (northern suburbs of Melbourne, Australia) some people are making nice $ by buying land and then selling it a few months later. The demand for land is high and the available block count is low, so the value can increase by 5-10% within half a year.

We were lucky and got our block at May 2003 prices even though we are only settling this month. We paid $AUD103k, it's worth $AUD115k-120k now.

3 years ago it would have cost $AUD60k.

The developers are pushing up the price too. One release had blocks priced at $AUD86k; the next release ONE MONTH LATER had the same size blocks priced at $106k. This is pricing set by the developer, not individuals reselling their land. It's a staggering increase and enough to wipe out many first home buyers.

I am already planning to buy the block of land for our second house (even before we've built the first one) so that it just sits there and appreciates for a couple of years... :glugglug

Stocks do 10% per year. This is a very long average. Real Estate does 3% per year. Pretty easy to get 4-1 leverage so that you make 12%. Then if cash flow is positive you add that in too.

Your example above is 200% return in "a few years". Even if costs ate 40k so that you only doubled, it would take a balanced stock portfolio 7.2 years to do that.

You are dead wrong. Stocks go up 10% a year over time. Residential real estate only 3%. Sure there are tax benefits to real estate but stocks still ebtter log term investment for most.

There are plenty of publically traded companies that specialize in real estate investing and development. They have millions in assets, their own construction crews, their own appraisers... etc..

Why not just invest in one of those, instead of buying your own real estate?

Unlike what some people have said here, stock investing can be leveraged too, interest is tax deductible as well... not to mention that stocks are also 10x easier to buy and sell, and are 100% maintance free.

In my opinion, if you add everything up, real estate does not offer any better returns on average than stocks.

If you have the money, nothing better than real estate :thumbsup I am regretting it :( With low interest rates, houses are selling like mad. They are sold before they are built :glugglug

real estate is a gold mine

We did 100%+ on stocks last year on a maximum of 10% risk. This is not a big amount at all, there are a number of investors out there that do 200%+ with maximum risks in this region.

I think you are making the same mistake as alot people do concerning real estate ROI! They never add all the costs thay incured at acquiring, holding and selling real estate...

Alex could you give me a little more insight on the 'hidden' costs with investing in real estate ?

Some great info in this thread :thumbsup

indeed... you HAVE to be rich BEFORE you can make money doing real estate... Real estate is just building up a steady stream for the future:thumbsup I'm doing around 12%/year on stocks over the last 6 years... now thats nice!

Lets take the example earlier mentioned and say you purchased a $200,000 residential property with a $40,000 cash down and and resold at $280,000 a few years later. What alot of people will tell you is that they made a 100% return on their investment (ROI).

But they tend forget the commission they paid for selling the property, the interest paid on the mortgage, the property taxes, insurance, maintenance and repairs, closing costs, etc.

In the long term, stocks beat real estate. But people prefer real estate because they can see it , touch it and have more direct control over it...:)

real estate for sure

Last time I checked, historically real state has had the highest returns.

real estate !